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14 Cards in this Set

  • Front
  • Back
pure insurance that covers the insured for a set period of time
term insurance
term insurance that provides the same death benefit throughout the policy's entire term
level term insurance
term insurance that provides a decreasing death benefit during the term of the policy
decreasing term insurance
a policy that combines life insurance protection with a savings feature
whole life insurance
ordinary whole life insurance
straight life insurance
the currect value of the saving features of a whole life policy; the policy can usually be surrendered for its cash value
cash value
a life insurance policy that combines life insurance protection with a tax deferred savings account that earns competitive interest
universal life insurance
the recipients of the proceeds of the policy if the insured dies
a clasue that doubles or triples the amount of life insurance proceeds in the event the insured died in an accident
double- or triple- indemnity clause
a clause that commits the insurance company to make premium payments for you if an illness or accident prevents you from working
waiver or premium clause
a clause giving you the right to purchase additional insurance without having to pass a physical exam
guaranteed insurability clause
a feature that protects your cash value should you allow the policy to lapse
nonforfeiture option
a method of valuing an insurance policy according to the amount of premiums paid, minus the accumulated cash value
net cost method
a method of computing the cost of an insuracnce policy, taking into account the total premiums paid, the accumluated cash value, and the calue of accrued dividends
interest-adjusted cost index method